NERC Reliability Standards - Development Process: Involvement & Needs Presentation to MOSC January 14, 2004 Khaqan Khan Independent Electricity Market Operator

Objective of Presentation To inform participants about the NERC Standards Development Process To make aware that IMO is participating actively in this process To present opportunities for market participants for more involvement Solicit feedback from participants on information and involvement needs

Introduction NERC Develops standards, certifies personnel and companies, monitors compliance ANSI certified standards development process New NERC Standards (BES Reliability Planning and Operation IMO actively participates in the Standards Development Process as per market rules

Standards in Development

NERC Standards Development Process 1. Request for Standard -By submitting Standards Authorization Request 5.Draft New or Revised Standard -By assigning a Standard Drafting Team -- technical expertise 2.Posting of SAR for Public Comments -Upon acceptance by Standards Authorization Committee-SAC) 3.Solicit Participants for Ballot Pool and Standard Drafting Team - To participate in consensus - Each SAR into a new or revised standard 4.Authorization to Proceed with Drafting Standard -Authorizes Standard or rejects SAR 6.Solicit Public Comments on Draft Standard - Comments accepted - 45 day period from notice of posting 7.Field Testing (Industry wide or one or more lesser scale demonstrations) 8.Analysis of comments and Field Test Results) - To resolve objections expressed - further decisions: ballot, withdraw or major revision 9.Ballot the New or Revised Standard - draft standard, all comments and responses posted on web 10. Adoption of Standard 11. Implementation of Standard

Highlights Process open to all (Requests by parties - response to postings) Two-stage approval: SAR (scope) and actual standard Weighted sector voting: only broadly acceptable standards will be approved Balloting (Second ballot, if required) Appeals (Level 1 & 2) IMO has been participating & developing positions with regards to Ontario

Guidelines for Participation Registered Ballot Body - Comprises all organizations, and entities that: Qualify for one of the segments, and Registered with NERC as potential ballot participants Current with any designated fees. Segments 1. Transmission Owners 2. RTOs, ISOs, and RRCs 3. Load Serving Entities (LSEs) 4. Transmission Dependent Utilities (TDUs) 5. Electric Generators 6. Brokers, Aggregators, & Marketers 7. Large End-Use Customers 8. Small End-Use Customers 9. Regulators or Other Gov’t Entities

Conclusions and Next Steps Standards under development Market Participants may: participate in NERC Standards Development Process join in balloting for consensus development of standards The IMO shall continue to represent Ontario in the Reliability Standards Development Process

Feed back from Participants To what extent are participants interested in becoming involved in this process? What are expectations of participants for information about this process?

References and Links NERC Reliability Standards NERC Reliability Standards Process Manual Registered Ballot Body Listing Standards Under Development